Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (18840)	3/19/2009 11:28:51 AM
From: Tommaso	Read Replies (1) \| Respond to of 71442

One measure of M1 has it at about $1,500 billion. federalreserve.gov But this series, which does not have M1, shows MZM at over $9,400 billion. The monetary base seems to be about $750 billion. research.stlouisfed.org They agree on M2 as being at about $8,300 billion. Maybe we better concentrate on M2. I think that's what Friedman used to prefer, also. $300 billion, huge as it sounds, is less than 4% of M2, though it is 33% of the monetary base. Given the looseness of banking and reserve regulation right now, the potential fractional reserve multiplier does seem to be (temporarily, at least) infinite. But there's also the incentive for banks to keep larger reserves with the Fed now because it's paying them interest to do so. Maybe the next big shoe to drop would be the cessation of payments of interest on reserves.